ArticleFrontiers in public health2024
Impact of National Centralized Drug Procurement policy on chemical pharmaceutical enterprises' R&D investment: a difference-in-differences analysis in China.
Article in Frontiers in public health, 2024. The graph could read no effect estimate from its abstract, so it casts no vote on the map. Cited by 6 papers.
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Who cites it
6 citing papers in PubMed.
- Drug price trends, regional disparities, and supply shortages under China's National Volume-Based Procurement: a nationwide analysis (2018-2024).BMC health services research · 2026Article
- Analysis of the impact of national centralized volume-based procurement drug policy on the market dynamics of tuberculosis drugs.BMC health services research · 2026Article
- The impact of China's National Drug Centralized Procurement Policy on pharmaceutical firm innovation: evidence from a staggered difference-in-differences analysis.Journal of pharmaceutical policy and practice · 2026Article
- The impact of the consistency evaluation policy of generic drugs on the integration of innovation chain and industrial chain in the pharmaceutical manufacturing industry.Frontiers in public health · 2026Article
- Article
- Impact of National Drug Price Negotiation policy on the innovation performance of biopharmaceutical industry in China.Frontiers in public health · 2025Article
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Authors and funding
8 authors.
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Abstract
Objective: This study aimed to evaluate the impact of the National Centralized Drug Procurement (NCDP) policy on chemical pharmaceutical enterprises' R&D investment and provide references for improving NCDP policy design and encouraging innovation in the pharmaceutical industry. Methods: Using the panel data of 102 Shanghai and Shenzhen A-share listed enterprises from 2016 to 2022 under the chemical pharmaceutical classification of Shenwan in Wind database as the research sample, this study developed difference-in-differences (DID) models on bid-winning and bid-non-winning enterprises, respectively, to evaluate the impact of NCDP policy on their R&D investment. In addition, this study tested the heterogeneity of bid-winning enterprises based on the bid success rate, the decline of drug price, and enterprise size. Results: The NCDP policy could encourage chemical pharmaceutical companies to increase R&D investment, but the low bid success rate and excessive drug price reduction would reduce their R&D enthusiasm, especially for small- and medium-sized enterprises. Discussion: It is suggested that the NCDP policy should be further improved: first, revise the bidding rule of the NCDP policy and increase the bid success rate so that more enterprises can win bids, and second, to solve the problem of excessive drug price reduction, evaluate the rationality of bid-winning prices, and introduce a two-way selection mechanism between medical institutions and supply enterprises. Integrate pharmacoeconomic evaluation into the NCDP rules to form a benign competition among enterprises. Third, attention should be paid to supporting policies for small- and medium-sized enterprises. By increasing procurement volume, shortening payment time limits, and increasing the proportion of advance payments, enterprises' cash flow shortages can be alleviated, thus achieving fairness and inclusiveness in the implementation of the NCDP policy.
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